ANGKASA-X Losses Widen 54% Amid Revenue Plunge, Soaring Liabilities

TL;DR

**ANGKASA-X is burning cash faster than it's making it, with revenue collapsing and liabilities exploding – steer clear until they prove a viable business model.**

AI Summary

ANGKASA-X HOLDINGS CORP. (AXBVI) reported a significant increase in net loss for the fiscal year ended December 31, 2023, reaching $(1,686,901) compared to $(1,095,765) in 2022, representing a 54% deterioration. Revenue declined sharply by 61.4% from $515,348 in 2022 to $198,740 in 2023. This revenue drop, coupled with a 34.5% increase in general and administrative expenses to $(1,748,690) from $(1,299,748) in 2022, contributed heavily to the expanded losses. The company's total assets grew to $1,866,916 in 2023 from $1,283,345 in 2022, but current liabilities surged by 230% to $3,266,494 from $990,482, leading to a substantial increase in total stockholders' deficit to $(1,863,522) from $(176,574). The filing, an Amendment No. 1 to the original 20-F, primarily includes revised financial statements and related disclosures, along with updated auditor consent and certifications, without reflecting events after the original filing date of October 24, 2024. The company, incorporated in the BVI on January 22, 2021, has commenced limited operations and faces significant risks associated with its new satellite technology business, reliance on limited manufacturers, and potential in-orbit satellite failures.

Why It Matters

This 20-F/A filing reveals a company in a precarious financial state, with a substantial increase in net loss and a dramatic decline in revenue. For investors, the 230% surge in current liabilities and the deepening stockholders' deficit signal severe liquidity challenges and heightened financial risk. Employees and customers might face uncertainty regarding the company's long-term viability, especially given its reliance on limited manufacturers for critical satellite components and the inherent risks of new satellite technology. In the competitive space industry, ANGKASA-X's struggles could make it difficult to secure necessary funding or partnerships, potentially impacting its ability to execute its A-SEANLINK Satellite Constellation plans and compete with more established players.

Risk Assessment

Risk Level: high — The risk level is high due to a 54% increase in net loss to $(1,686,901) in 2023 and a 61.4% revenue decline to $198,740. Furthermore, current liabilities surged by 230% to $3,266,494, significantly exceeding current assets of $92,819, indicating severe liquidity issues and a negative working capital position.

Analyst Insight

Investors should exercise extreme caution and consider avoiding ANGKASA-X HOLDINGS CORP. given the significant financial deterioration, including widening losses and surging liabilities. Await evidence of a sustainable business model, improved revenue generation, and a stronger balance sheet before considering any investment.

Financial Highlights

debt To Equity

N/A

revenue

$198,740

operating Margin

N/A

total Assets

$1,866,916

total Debt

N/A

net Income

$(1,686,901)

eps

$(0.0074)

gross Margin

N/A

cash Position

$92,819

revenue Growth

-61.4%

Key Numbers

• $198,740 — Revenue (Decreased 61.4% from $515,348 in 2022 to $198,740 in 2023)
• $(1,686,901) — Net Loss (Increased 54% from $(1,095,765) in 2022 to $(1,686,901) in 2023)
• $(1,748,690) — General and Administrative Expenses (Increased 34.5% from $(1,299,748) in 2022 to $(1,748,690) in 2023)
• $3,266,494 — Current Liabilities (Increased 230% from $990,482 in 2022 to $3,266,494 in 2023)
• $92,819 — Current Assets (Slightly decreased from $94,015 in 2022 to $92,819 in 2023)
• $(1,863,522) — Total Stockholders' Equity (Deficit) (Worsened from $(176,574) in 2022 to $(1,863,522) in 2023)
• 229,000,001 — Outstanding Ordinary Shares (Consistent as of December 31, 2023 and 2022)
• $(0.0074) — Net Loss Per Common Share (Increased from $(0.0048) in 2022 to $(0.0074) in 2023)

Key Players & Entities

• ANGKASA-X HOLDINGS CORP. (company) — Registrant
• Dato' Dr. Kok Wah Seah (person) — Chief Executive Officer
• SEC (regulator) — United States Securities and Exchange Commission
• $198,740 (dollar_amount) — Revenue for fiscal year ended December 31, 2023
• $515,348 (dollar_amount) — Revenue for fiscal year ended December 31, 2022
• $(1,686,901) (dollar_amount) — Net loss for fiscal year ended December 31, 2023
• $(1,095,765) (dollar_amount) — Net loss for fiscal year ended December 31, 2022
• $3,266,494 (dollar_amount) — Current liabilities as of December 31, 2023
• $990,482 (dollar_amount) — Current liabilities as of December 31, 2022
• $(1,863,522) (dollar_amount) — Total stockholders' equity (deficit) as of December 31, 2023

FAQ

Risk Factors

• Deteriorating Financial Performance [high — financial]: The company experienced a 54% increase in net loss to $(1,686,901) in 2023 from $(1,095,765) in 2022. This was driven by a 61.4% decline in revenue to $198,740 and a 34.5% increase in G&A expenses to $(1,748,690). Current liabilities surged by 230% to $3,266,494, leading to a significant increase in the stockholders' deficit to $(1,863,522).
• New Satellite Technology Business Risks [high — operational]: The company faces significant risks associated with its new satellite technology business, including potential in-orbit satellite failures. This is a nascent business with unproven technology and high operational risks.
• Reliance on Limited Manufacturers [medium — operational]: The company's reliance on a limited number of manufacturers for its satellite technology poses an operational risk. Disruptions or failures at these suppliers could significantly impact production and delivery schedules.
• Negative Working Capital [high — financial]: Current liabilities of $3,266,494 far exceed current assets of $92,819, resulting in a substantial negative working capital position. This indicates a significant short-term liquidity challenge.
• Growing Stockholders' Deficit [high — financial]: The total stockholders' deficit has widened dramatically from $(176,574) in 2022 to $(1,863,522) in 2023, indicating that liabilities exceed assets. This raises concerns about the company's solvency.

Industry Context

Angkasa-X operates in the nascent satellite technology and space services sector, a rapidly evolving industry with high capital requirements and significant technological risks. The competitive landscape includes established players and emerging companies, all vying for market share in areas like satellite deployment, data services, and connectivity. Trends include the increasing demand for low-Earth orbit (LEO) constellations and specialized satellite applications.

Regulatory Implications

As a foreign private issuer, Angkasa-X is subject to SEC reporting requirements, including the filing of Form 20-F. The company's operations, particularly in satellite technology, may also be subject to national and international regulations concerning spectrum allocation, launch approvals, and orbital debris management.

What Investors Should Do

1. Scrutinize the revised financial statements and disclosures in Amendment No. 1.
2. Assess the viability and execution plan for the satellite technology business.
3. Monitor cash burn rate and future funding needs.
4. Evaluate the management's strategy to address the deteriorating financial position and growing liabilities.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the revised financial statements showing significant loss increase and revenue decline.
• 2024-10-24: Original 20-F Filing Date — Date of the initial annual report filing before the amendment.

Glossary

20-F/A

An amendment to a Form 20-F, which is an annual report required for foreign private issuers with securities traded in the U.S. (Indicates that the filing contains revised financial statements and disclosures for the fiscal year ended December 31, 2023.)

VIE Agreements

Contractual arrangements used by companies to control entities in which they do not have an equity ownership, often for regulatory reasons. (Angkasa-X uses VIE agreements to consolidate AngkasaX Innovation Sdn. Bhd., indicating a complex ownership structure.)

Stockholders' Deficit

A negative stockholders' equity, meaning the company's liabilities exceed its assets. (The company has a significant and growing stockholders' deficit, highlighting its precarious financial position.)

BVI

British Virgin Islands, a common jurisdiction for company incorporation due to favorable tax and corporate laws. (Angkasa-X Holdings Corp. is incorporated in the BVI.)

Year-Over-Year Comparison

Compared to the prior year, Angkasa-X Holdings Corp. has seen a dramatic deterioration in its financial performance. Revenue has plummeted by 61.4% to $198,740, while the net loss has widened by 54% to $(1,686,901). General and administrative expenses have also increased by 34.5%. Most concerning is the surge in current liabilities by 230% to $3,266,494, leading to a substantial increase in the total stockholders' deficit. The company's financial position has weakened considerably, with current assets remaining minimal and failing to cover short-term obligations.

Key Financial Figures

• $0.0001 — registered Ordinary shares, par value $0.0001 per share Not applicable Securities

Filing Documents

• form20-fa.htm (20-F/A) — 1718KB
• ex12-1.htm (EX-12.1) — 12KB
• ex12-2.htm (EX-12.2) — 13KB
• ex13-1.htm (EX-13.1) — 6KB
• ex13-2.htm (EX-13.2) — 6KB
• ex23-1.htm (EX-23.1) — 4KB
• form20-fa_001.jpg (GRAPHIC) — 18KB
• form20-fa_002.jpg (GRAPHIC) — 27KB
• form20-fa_003.jpg (GRAPHIC) — 17KB
• form20-fa_004.jpg (GRAPHIC) — 27KB
• form20-fa_005.jpg (GRAPHIC) — 19KB
• form20-fa_006.jpg (GRAPHIC) — 23KB
• form20-fa_007.jpg (GRAPHIC) — 6KB
• form20-fa_008.jpg (GRAPHIC) — 10KB
• form20-fa_009.jpg (GRAPHIC) — 11KB
• fin_001.jpg (GRAPHIC) — 14KB
• ex23-1_001.jpg (GRAPHIC) — 42KB
• 0001493152-25-024193.txt ( ) — 6511KB
• axhcp-20231231.xsd (EX-101.SCH) — 50KB
• axhcp-20231231_cal.xml (EX-101.CAL) — 67KB
• axhcp-20231231_def.xml (EX-101.DEF) — 175KB
• axhcp-20231231_lab.xml (EX-101.LAB) — 326KB
• axhcp-20231231_pre.xml (EX-101.PRE) — 255KB
• form20-fa_htm.xml (XML) — 638KB

forward-looking statements include, but are not limited to, statements concerning the following

forward-looking statements include, but are not limited to, statements concerning the following: growth strategies: future business development, results of operations and financial condition; any our ability to attract and retain users and customers and generate revenue and profit from our customers; any any future regulatory, judicial and legislative changes in the Company's industry. You should not rely upon forward-looking statements as predictions of future events. We cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or occur. All forward-looking statements in this Report are current only as of the date on which the statements were made, or in the case of a document incorporated by reference, as of the date of that document. Except as required by law, we do not undertake any obligation to update publicly any forward-looking statements for any reason after the date of this Report or to conform these statements to actual results or to changes in expectations. 2 PART I Item 1. Identity of Directors, Senior Management and Advisers Not applicable. Item 2. Offer Statistics and Expected Timetable Not applicable. Item 3. Key Information A. Select Financial Data The following table presents the selected consolidated financial information for our Company. Year ended Dec 31, 2023 Year ended Dec 31, 2022 (Audited) (Audited) Revenue $ 198,740 $ 515,348 Cost of revenue $ (63,350 ) $ (276,042 ) Gross Profit $ 135,390 $ 239,306 Other income Unrealised gain from foreign exchange $ - $ 119 Other income $ 5,093 $ 1,066 $ 5,093 $ 1,185 Operating expenses: General and administr

View Full Filing

View this 20-F/A filing on SEC EDGAR